May 27, 2008

"Taking the Mystery Out of Options Trading "

With a market environment as volatile as the one we're currently in, it's not surprising that a lot of investors have tightened up the grip on their wallets. They're the cautious players—the risk-averse. I'm not one to judge, but cringing at every dip in the S&P or sweating bullets every time a negative headline scrolls across a billboard in Times Square is counter-productive.

This is not a time to crouch on the sidelines! There's tremendous profit potential oozing from every rally- and plunge-line on the S&P 500. Investors have the option—actually, a lot of options—to play this stock market left and right.

Stocks are great for long-term investors, but what about the short-term? Options-trading! Clearly, options aren't for everyone because there's a lot of risk involved. But if you manage your risk properly, phenomenal returns are possible.

At Trending123, we want to take the mystery out of buying and selling options. Many people have lost money in the Options Market, but one trader's loss is another trader's gain. The belief that 90% of all options expire worthless is a popular misconception. Here's the breakdown:

1. 30% of options expire worthless,
2. 10% of options are exercised, and
3. 60% of options are traded out of closed by creating an offsetting position.

When an option is bought, one is sold. One trader wins and another has to lose and here at Trending123, we want make sure you're on the winning side of the options game.

Here are some of the phenomenal gains we've seen from our closed option trades over the past couple weeks:

• FLIR, up 106.9%
• KLAC, up 128.57%
• BRCM, up 200%

Long Call Options: A Bullish Strategy

Long Call options are a debit strategy, unlike Call (selling) Options that are a credit strategy. Long Call options offer much more potential for dollar gains than writing (selling) Call Options where our profits are limited to the premium we received for writing the option.

When we buy a Call Option, we buy the right to call out the underlying security (stock) at the strike price value that we chose to buy the call option. The beauty of it is we can simply sell out the call option we bought at any time before the expiration date.

The best time to buy a call option is when the stock we've set our sights on is volatile and on the brink of breaking out of its pattern.

Timing is everything. Call options can lose value fast if the stock doesn't break out the way we expect it to.

A word to the wise: Never risk what you can't afford to lose. If you take on too much risk, it'll likely backfire. Cut your losses before an options trade blows up in your face.

With a little bit of discipline and perhaps some guidance from a trusted advisor with a proven track record, you too could jump on the options bandwagon and be well on your way to fast profits.

Get ready to rally alongside my Trending123 subscribers and reap profits most investors can only dream about!

Sincerely,

John Lansing
Trending123

Promising New Options Trade

DryShips (DRYS) engages in the ownership and operation of dry bulk carrier vessels worldwide on various trade routes carrying cargoes for a range of industries. The company provides international seaborne transportation services with its fleet of 27 dry-bulk vessels. Our last closed options trade for DRYS yielded us a 275.38% gain!

Click here to learn more about the pattern that DRYS followed that led us to explosive profits!

Critical Mistakes Checklist

Avoiding mistakes is especially critical in such a turbulent market as it can sometimes blindside us with all its negativity. Re-commit the following to memory to help you weather the current storm.

1.  Wanderers get lost. Take the time to develop a well thought out investment plan (including your financial goals, personal goals, risk tolerance, available investment amount, etc.)!

2.  Passion fizzles. People are fallible and they make decisions based upon their emotional reactions instead of facts and research. Do your homework—it will pay off in the long run.

3.  This little piggy…Remember, what goes up must come down eventually. Do your research, read the professional analyses, and take your profits before you lose them.

4.  Diagnosis: Analysis paralysis. If you're on information overload, rely on the advice of your broker (if they offer it) and trusted resources such as Trending 123.

5.  Few Pots of Gold. Don't enter into the trading arena with a "get rich quick" mentality. The market is volatile. If you don't have the stomach for it, look for the lowest risk possible.

6.  Enter at your own risk. Risk can be managed, but it exists with every trade. A well-researched trade can minimize the chance of a negative outcome, but you are always taking a risk.

7.  Sleeping on the job. If you don't have the time, or conviction, to regularly monitor your investments, rely on financial investment services and advice from people like me.

8.  Many eggs, one basket. Spread out/diversify your investments to offset the ups and downs of the market.

9.  Rumor has it. Conduct your own research, consult your investment advisor and be sure the facts support hot "tips" before you make your decisions.

10.  Surplus Shopper. If you can't afford to lose it, you can't afford to invest it!

Subscribe to my Trending123 service and learn more helpful hints that'll send you well on your way to fast profits!